The Fed Disappoints Wall Street, the Dollar Didnít Show Relative Strength

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The Fed Disappoints Wall Street, the Dollar Didnít Show Relative Strength

Post  harpal1980 on Thu Nov 05, 2009 2:49 am

It was an interest rate decision day yesterday, as the Fed released its statement mentioning that even though the economy is recuperating, there are still concerns regarding consumer consumption, which derives from the employment situation. The Fed left it rates at a range of 0-0.25%, stressing that it will leave its rates at their current low level for an extended period.

The markets took the news more than lightly, erasing their intraday gains, after bouncing higher at the start of the session. Even though additional fundamental data helped to spark buying throughout the session, including a better ADP result, of -203.00k, the market lost its steam during the session. One must note that the ADP result was better that last monthís result, but came out lower than expected.

After presenting some volatility the major indices began to decline, led lower by the financial sector. The fed also mentioned that while the overall market has improved the battered financial market didnít show signs of improvement during October. The major indices closed mixed with the S&P500 holding on to positive territory. The Nasdaq closed the session lower, down by 0.09%.

From a technical point of view, the S&P500 is still holding above it prior low, but is yet to complete its current turnaround and form a higher low.

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